Gold drops to session low at $1323, headed for second week of declines
|After rising to a session high level of $1333, Gold turned lower and is now trading back below $1325 and now seems to be headed to post second week of consecutive losses.
Improving risk-appetite continues to hurt the safe-haven appeal for the yellow metal. Moreover, the incoming US economic data continues to fuel speculation of an imminent Fed rate-hike, sooner rather than later, and is further denting dollar-denominated commodities - like gold.
On Thursday, the precious metal got some respite after ECB left doors open for introducing additional stimulus measures at its meeting during September. Moreover, talks of fresh fiscal stimulus package from the Japanese government also extended some support for the yellow metal.
The metal, however, resumed with its near-term corrective move as post-Brexit calm continues to drive investors to riskier assets and dump traditional safe-haven assets - like treasuries, Yen and gold.
Technical levels to watch
From current levels $1315 level seems to protect immediate downside, which if broken seems to extend the commodity's near-term corrective move towards $1305-1300 support area. A follow through selling pressure below $1300 handle has the potential to continue dragging the metal towards its next major support near $1285 region, marked by 50-day SMA.
On the flip side, $1335 area now seems to have emerged as immediate resistance. Any up-move beyond $1335 resistance now seems to confront a strong resistance near $1350 region and only a decisive strength back above this important resistance might negate any near-term bearish bias, thus opening room for resumption of the metal's near-term bullish momentum.
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